California AG Settles With National Bank For $8.5 Million Over Allegedly Recorded Phone Calls

On March 28, 2016, the Office of the California Attorney General announced a settlement of $8,500,000 with a national bank regarding alleged privacy violations concerning the recording of consumer telephone calls without their consent, as required by California law. The complaint alleged that the bank violated sections 632 and 632.7 of the California Penal Code “by failing to timely and adequately disclose its automatic recording of phone calls with members of the public.” As part of the settlement and stipulated judgment, the bank agreed to pay civil penalties and costs of $8 million and promised to contribute $500,000 to two California organizations “dedicated to advancing consumer protection and privacy rights.” The bank also agreed to comply with California’s strict recording laws and implement procedures for future compliance. The bank did not admit fault as part of the settlement, and worked cooperatively with the AG to implement nationwide policies sufficient to comply with applicable recording laws.